- NZDUSD surges to its highest since March 8
- But undergoes a setback after strong NFP report
- Oscillators ease but remain in positive zones
NZDUSD has been in an aggressive uptrend following its 2024 bottom of 0.5851 in mid-April, posting a fresh three-month high last week. Although the pair came under severe selling pressure on Friday due to a stronger-than-expected NFP report, it has been trying to erase its losses in the past couple of sessions.
Should the bulls attempt to push the price higher, immediate resistance could be found at 0.6170, which is the 61.8% Fibonacci retracement of the 0.6368-0.5851 downleg. Higher, the February-March double top region of 0.6215 could prevent further advances. A violation of that zone could pave the way for the 78.6% Fibo of 0.6257.
On the flipside, if the recovery falters, the 50.0% Fibo of 0.6109 could act as the first line of defence. Sliding beneath that floor, the price could descend towards the 38.2% Fibo of 0.6048. Should that barricade fail, the 23.6% Fibo of 0.5972 might provide downside protection.
In brief, NZDUSD pulled back from its three-month peak but quickly recouped part of its losses. However, traders should be cautious as the FOMC meeting and US CPI report on Wednesday could spark volatility in the pair.
